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Residence Transactions
(FTR 302-11)

SALE OF RESIDENCE

PURCHASE OF RESIDENCE

LEASE TERMINATION

Title must be in employees' name alone, or in the joint names of the employee and one or more members of his or her immediate family, or solely in the name of one or more members of his or her immediate family. For sale of residence purposes, the dwelling for which reimbursement of selling expenses is claimed must be the employee's residence at the time he or she was first officially notified, by competent authority, of his or her transfer and must be the residence the employee commutes daily to and from work.

A new hire/appointee under the Demo Project and transferee may choose to sell his or her residence using conventional method (direct sale) or elect to use the Government's Relocation Services Program, but must make this election when signing the 12-month service agreement. An individual electing to use direct sale may not later request the use of the Relocation Services Program.

Note: If an individual is not married at the time of transfer, but marries prior to settlement on the purchase of a new residence, and includes the new spouse on the title, the employee will receive the full percentage of allowable expenses. If an individual does not marry until after settlement, and includes the new spouse on the title, they will only receive 50% of the allowable expenses.

TIME LIMITATIONS:

Settlement dates for the sale and purchase or lease termination must be no later than two (2) years after the date that the employee reported for duty at the new official station.

A written request for an extension of time, not to exceed an additional one (1) year, must be submitted before the expiration of the first two-year limitation; in no case shall the request be submitted later than 30 calendar days after the expiration date (FTR 302-6 (e)). An additional one-year extension may be requested, with justification, but in no cases may the total time for residence transactions exceed four (4) years.

OVERALL LIMITATIONS:

• In connection with the sale of the residence at the old official station, reimbursement of allowable expenses will not exceed 10 percent of the actual sale price.
• In connection with the purchase of a residence at the new official station, reimbursement of allowable expenses will not exceed 5 percent of the purchase price.
• Expenses for Unexpired leases may be reimbursed when:
• laws or terms of lease provide for payment of settlement expenses,
• expenses cannot be avoided by sublease or other arrangements,
• employee has not contributed to expense by failing to give appropriate notice promptly, and
• the broker's fees or advertising charges are not in excess of those customarily charged for comparable services in that locality.

Itemization of these expenses is required and must be supported by documentation showing expense was paid by the employee.

REIMBURSABLE ITEMS

In connection with the sale, and/or purchase of a residence, provided they are customarily paid by the seller of a residence in the locality of the old official station or by the purchaser of a residence at the new official station, to the extent they do not exceed specifically stated limitations, or in the absence thereof, amounts customarily paid in the locality of the residence (see FTR 302-6.2(d)). Items customarily paid by the seller or purchaser should be annotated by the real estate broker.

NONREIMBURSABLE ITEMS

• Owners' title insurance policy, "record title" insurance policy, mortgage insurance or insurance against loss or damage of property, and optional insurance paid for by the employee in connection with the purchase of a residence for the protection of the employee;
• Interest on loans, points, and mortgage discounts;
• Property taxes;
• Operating or maintenance costs;
• No fee, cost, charge, or expense determined to be part of the finance charge under the Truth in Lending Act;
• Expenses that result from construction of a residence;
• Losses due to prices or market conditions.